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Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is count- one tenant-day. During February,
Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is count- one tenant-day. During February, the kennel budgeted for 3,000 tenant-days, but its actual level of activity wa tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and it results for February: Data used in budgeting: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for February: Revenue Wages and salaries Fixed element per month $ 0 $ 2,000 $ 106,530 Variable element per tenant-day $ 29.50 200 $ 5.50 10.30 7,000 2.50 6,800 0.30 $ 16,000 $ 18.60 Food and supplies Facility expenses Administrative expenses $ 23,400 $ 36,780 $ 19,150 $ 9,120 The activity variance for net operating income in February would be closest to:
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